Every cloud has a silver lining - Rising cybersecurity stocks

Every cloud has a silver lining - Rising cybersecurity stocks

 It’s well known that cybersecurity is one of the fastest-growing industries in the world, with an expectation to reach a total market size of more than $375B by 2029.

The main drivers for this forecast are the rise of eCommerce platforms, artificial intelligence, IoT (internet of things), and cloud security.  As more companies abandon physical servers and switch to the cloud and hosting services, the need to protect them will continue to grow.

Cyber-attacks are also expected to increase in the coming years and decades, which will drive the cybersecurity industry and companies that operate in this field to grow at an elevated rate.

Numerous companies are striving to grow market share and brand recognition as top companies in cybersecurity. Analysts and investors will eventually look for a leg-up to quickly identify opportunities before the rest of the market jumps on the bandwagon. By using Deshe’s Analytics’ AI-powered stock screener, we can determine that Akamai Technologies earned a BUY ranking due to the strong position of the company, stock growth, industry growth, and a strong managerial team that has shown itself to be extremely capable of leading the company to success. Those are the reasons Deshe’s Analytics’ AI-powered research identified the company as a particularly interesting company to look into now.

Akami specializes in cybersecurity, content delivery networks, and cloud services. In general, cloud computing and cloud services are the fastest-growing subsectors of the IT field, with a CAGR of 16.3% by 2026. This growth should have a tremendously positive tailwind, which will likely benefit Akamai. Moreover, Deshe’s AI’s analysis of their recent reported fundamentals, technicals, and holistic results, available here, makes a compelling case to take a deeper dive.

But not all cybersecurity and cloud companies will beat the benchmarks of the industry. Based on Deshe’s AI-powered research, one of the companies that was highlighted to likely underperform is Okta. The company offers Okta Identity Cloud, Auth0 products, passwordless authentication, and numerous other products and services. According to their most recent financial report, Deshe’s AI-analysis revealed significant negative income, growth, and value factors, which indicate that the company is finding it increasingly difficult to produce impressive numbers. These results anticipate weak growth potential for Okta's stock's price moving forward. You can read the AI-based report in numerous languages here for a more detailed look and granular explanation.

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